Raytheon 2012 Annual Report Download - page 114

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
106
upon the expected achievement of those performance goals.
LTPP activity related to the expected units was as follows:
Units
(in thousands)
Weighted-
Average
Grant Date
Fair Value
Outstanding at December 31, 2009 1,661 $ 57.65
Granted 439 55.74
Decrease (194) 56.21
Vested (746) 53.33
Forfeited (88) 53.39
Outstanding at December 31, 2010 1,072 50.34
Granted 458 52.33
Decrease (66) 57.83
Vested (473) 74.79
Outstanding at December 31, 2011 991 50.07
Granted 484 50.83
Increase 407 53.32
Vested (462) 46.04
Outstanding at December 31, 2012 1,420 $ 52.57
The increase (decrease) above relates to changes in the amount of expected awards as achievement is measured against
performance goals.
Stock Options
In 2004, we changed the primary form of our broad-based equity compensation from stock options to restricted stock. There
have been no stock options granted since 2005.
Stock option activity was as follows:
Shares
(in thousands)
Weighted-
Average
Option Price
Weighted-
Average
Remaining
Contractual
Term
(in years)
Aggregate
Intrinsic
Value
(in millions)
Outstanding at December 31, 2009 8,732 $ 35.28 2.3 $ 142
Exercised (2,167) 30.15
Forfeited or expired (115) 24.40
Outstanding at December 31, 2010 6,450 37.23 1.5 59
Exercised (1,867) 33.73
Forfeited or expired (185) 30.85
Outstanding at December 31, 2011 4,398 38.98 0.8 41
Exercised (3,238) 40.61
Forfeited or expired (271) 44.00
Outstanding at December 31, 2012 889 $ 31.56 0.5 $ 23
Exercisable at December 31, 2012 889 $ 31.56 0.5 $ 23
The total intrinsic value of options exercised in the years ended December 31, 2012, 2011 and 2010 was $38 million, $29
million and $51 million, respectively.
As of December 31, 2012 and December 31, 2011 all outstanding options were fully vested and exercisable. No options vested
during the years ended December 31, 2012 and December 31, 2011.